Making Dollars & Cents of Chevron’s $50 Billion Acquisition of Anadarko

2019 A&D logjam broken with sixth largest deal in oil and gas history Austin, TX (April 15, 2019) – Drillinginfo, the leading energy SaaS and data analytics company, released a new analysis focused on Friday’s announcement that Chevron would acquire Anadarko Petroleum Corporation for $50 billion, the sixth largest transaction in the history of oil and gas acquisitions. If finalized, the deal would break a ‘deal logjam’ given U.S. oil and gas M&A deal values plunged to a record 10-year low in the first quarter of 2019. “Chevron stands to strengthen its already strong Upstream portfolio to extend its strength in the US shales, deepwater Gulf of Mexico and adds a strong world class LNG resource in Mozambique,” said Drillinginfo M&A Analyst Andrew Dittmar. “From a Wall Street and investor perspective, the deal checks the boxes and is accretive on per share free cash flow, operating cash flow and earnings.  On the strength of synergies, Chevron bolsters its annual share buyback target from $4 billion to $5 billion per year,” said Dittmar. Deal Structure Payment structure of the deal: $33 billion due to shareholders ($65 per share) with 75% equity and 25% cash, or .3869 shares of Chevron stock and $16.25 in… continue reading

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Source: CTRM Center

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